Contractor's Revenue Recognition Reminder Checklist 2019 Revenue Recognition | Page 3

Yes No N/A Comments >> Determine the Impact of the Guidance Have all systems and processes that will be affected by the revenue recognition guidance been identified? (List affected systems and processes in the Comments column.) For each affected system or process, has the effect on the following been evaluated: • Procedures and methods • Internal controls • IT • Software or spreadsheet applications • Documentation >> Select a Transition Method Has a transition method been selected? (Use the Comments column to indicate whether full or modified retrospective adoption is chosen.) If full retrospective adoption is elected, can the transition adjustment be determined at the beginning of the earliest period presented and can any of the practical expedients of FASB ASC 606 be applied? If modified retrospective adoption is elected, will the accounting records be able to be maintained under both FASB ASC 606 and previous GAAP during the year of initial adoption to meet disclosure requirements? Has the ability to capture historical information needed for restatement of customer contracts been evaluated? Are procedures in place to track on a real-time basis the information needed to restate contracts with customers? >> Make Changes to Operations, Systems, Processes and Internal Controls Has a project plan been developed to make needed changes to operations, systems, processes and internal controls? >> Train Staff Have all impacted personnel been trained on the detailed requirements of FASB ASC 606? >> Inform Stakeholders Will it be necessary to communicate with any of the following stakeholders regarding the effects of the revenue recognition guidance: • Audit committee • Board of directors • Investors • Lenders • Regulators • Employees • Other (specify) CONTRACTOR’S REMINDER CHECKLIST | 2